Make sure your investment is a sound one with these tips to investing in a boom market.
Now has been dubbed a ‘golden period’ for property in Vietnam. The country is receiving worldwide attention as the market makes traction since foreigners are now permitted to own property. The market has responded well and developments from the affordable to the luxury sector are springing up.
Investing in property involves carrying out research. This is the case of regardless of the what stage of maturity the market it is in. Buying in a boom market isn’t always straightforward, so follow our guide to make sure your investment is a profitable one.
1. Be realistic.
Buying property when the market is rising is guaranteed way to generate capital appreciation. However, it is easy to get swept up in the excitement of a boom market. Seeing a lot of activity is likely to compel you to get on board too. Therefore be realistic about what you can afford and what is the right investment for you. Remember the market does go in cycles so forecast whether you will be able to afford the property should there be a dip in the future.
2. Keep up communication.
When the market is busy, real estate agents and developers will have a lot of people to respond to. Therefore you need to make sure that you are proactive and don’t wait for them to contact you. If you do, you may miss out. Remind them that you are still looking by maintaining communication with them, and your eagerness will pay off.
3. Due diligence.
As a buoyant market is lucrative, this creates an opportunity for new developers to come onto the scene. As an investor you want to make sure that you are buying a sound investment, so you need to do your due diligence on the developer. By buying from a trusted developer, you will know their track record and also have the chance to see previous projects to assess their quality and level of specification. A new developer may lure you in with lower price tags, so it is important to do your homework to check their credibility before parting with your cash.
4. Pick the right property.
Just because the market is heading upwards doesn’t mean you should just buy any property. It is important to still make sure you invest in the right property as this will be the difference between making a profit and making a good profit. Picking a unit in a smaller property will mean that there is less competition when you come to sell it. Choosing one with a good view will also help. If there is a choice of layouts, make sure you select one with the best use of space and the most amount of storage. If there is an empty site next to the development, do your research to see if there are any proposed development on this site that could block your view in the future. Essentially you want to pick the best unit so that it is in demand to increase its capital appreciation.
